Suncor Energy Purchase

suncor-energy

Hi everyone just wanted to share with you a new purchase I made. On Tuesday August 6th I made a small buy and started a new position in Suncor Energy. The stock was purchased in my TFSA account.

What is Suncor Energy?

Suncor Energy Inc is a Canada-based integrated energy company. The Company is focused on developing Canada’s petroleum resource basin, Athabasca oil sands. The Company operates in three business segments: Oil Sands, Exploration and Production (E&P), and Refining and Marketing. The Company’s Oil Sands segment includes Oil Sands operations and Oil Sands ventures operations. Its E&P segment consists of offshore operations off the east coast of Canada and in the North Sea, and onshore assets in North America, Libya and Syria. The Company’s Refining and Marketing segment is engaged in Refining and Supply, and Marketing operations. In addition, it explores for, acquires, develops, produces and markets crude oil and natural gas in Canada and internationally. It transports and refines crude oil, and markets petroleum and petrochemical products primarily in Canada. It markets third-party petroleum products. The Company also conducts energy trading activities.

(Source: RBC Direct Investing)

On Tuesday a lot of the Canadian market was lower due to what happened with the stock market on Monday (Canadian market was closed on August 5th) so I signed into my trading account and noticed Suncor Energy was down and close to its 52 low I decided to buy a small position within the stock. The 52 week low is $35.53 and the high is $54.51. I believe the stock price is lower because of the regulatory environment here in Canada as it is increasing difficult to get pipelines built in this country. I believe if Keystone XL or Trans Mountain pipeline gets built or given the go ahead the share price will start climbing again.

Key 2018 Suncor Numbers

  • Oil production reached an all-time high of 732k barrels up from 685.3 (2017)
  • Funds from Operations reached $10.172B up from $9.139B in 2017
  • $5.4B returned to shareholders through dividends and share repurchases

 

Dividend

Suncor Energy currently pays a quarterly dividend of $0.42 per share. Which equates to an annually dividend of $1.68. The dividend has been raised for the 16 straight years including the 17% increase that was announced in the first quarter of 2019. The payout ratio is currently 43.2% (according to Yahoo Finance) so there is plenty of room for Suncor to continue to raise the dividend in future years.

The Purchase

I was able to purchase 21 shares @ $37.00 per share. This purchase will boost my forward income by $35.28

So what do you think of my purchase? Do you own Suncor or is it on your watchlist? Please feel free to comment below.

Thanks for reading

Matthew

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One thought on “Suncor Energy Purchase

  1. Suncor is the best energy company in the space. The produce, refine and sell. $37 per share for Suncor is a good price with the dividend yield of 4.5% which is pretty decent for such quality company. However, there are many uncertainties hoovering over the oil industry. Your investment is safe for at least two decades because of oil demand. Just pay attention at electric car sales because 50% of oil demand comes from gasoline. Other then that, It’s a great quality stock, which I believe Warren Buffet bought a big cut a few years ago.

    Liked by 1 person

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